Valuation techniques by liquidtor

Brewer v Iqbal [2019] EWHC 182 (Ch)

Brewer v Iqbal [2019] EWHC 182 (Ch) – this case appears to have some interesting facets. The case involved an Insolvency Practitoner who was held liable for damages for having seemingly sold intellectual property of an insolvent company as office holder at less than market value without apparent proper investigation of the values involved.

1. Speculation: It seems the claimant thought it was conceivable that there might have been a pre-arranged sale between the administrator and the directors of certain of the company’s assets.

“Mr Lewis: Mr Brewer, what you are saying is that Mr Iqbal agreed with the directors before his appointment as administrator that there should be a sale of the EPGs to their associated company, correct? A. Yes, it looks that way.” The court does not appear to have been willing to leap beyond that: “there is no evidence to support an inference that there was some kind of under the table agreement with the directors. When the circumstances are viewed against the background of his failed decision-making process there is little room to include an inference that he had an agreement to make a secret sale to the directors.”

2. Negotiation: The inference conceivably is for instance if there is a special purchaser think carefully before acceptance of their first offer.

“There is no evidence he sought to negotiate any price with the directors. He merely accepted their first offer.”.

Leave a Comment